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Learn more about shale energy

On the Global Implications of Shale: Setting the Scene

Article by Christof Rühl Chief Economist at BP
There are two aspects that make shale resources different from conventional oil. First, they appear to be widely distributed across regions. Second, most forecasters - ourselves included - predict production growth to remain concentrated in North America for the foreseeable future, despite the relatively even spatial distribution.
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Shale gas volumes previously announced can never become a reality

Kjell Aleklett, Professor , University of Texas at Austin and Uppsala University, Global Energy Systems
It is quite evident that the great volumes shale gas previously announced can never become a reality , writes Professor Kjell Aleklett. More than 90 percent of all shale gas in the U.S. comes from five areas of which four have now reached maximum production .
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Shale energy

This site is about shale energy and shale gas in Europe. New drilling technology started the so-called shale revolution. Large reserves of oil and gas can now be extracted at low cost.

In March 2013 natural gas prices inch toward $4 per 1,000 cubic feet on the NYMEX futures market, Gas prices will likely cap out in the mid-$4 range by the time we reach midsummer. Read more

Shale gas will give the United States new high-growth and low-cost energy – like it was in the 50’s according to several American economists. Shale gas is one of the main reasons that U.S. CO2 emissions fall. Gas is better than oil.

Shale gas is a type of energy that is attracting more and more interest, especially internationally. According to some experts the US would be “completely independent of imported oil, probably by 2030”. Shale gas is natural gas produced and bound in bedrock consisting of shale. It is mainly the organic rich, dark shale, which has a potential to contain shale.

Shale Threatens Saudi Economy, Warns Prince Alwaleed in Wall Street Journal
The famous Saudi investor and billionaire Prince Alwaleed bin Talal, warns that the Saudi economy is vulnerable when the cheaper shale gas from the United States puts more spin on the international energy market according to an article in Wall street Journal. The warning comes in a letter dated May 2013 but has now been made public. The main point is that demand for OPEC members’ oil will slip because of the shale gas revolution.

What is shale gas?
The gas consists largely of pure methane. A distinction is made shale produced by thermal (heat) degradation and gas formed by biological degradation of organic materials. Most of the shale gas that is extracted today, especially in the U.S., are thermally formed in the deep dark shales.

Natural gas will only be abundant and cheap if a lot of shale gas can be brought to market: thus far only US has demonstrated that ability” Tweet by Roubini Global alias Dr Doom in April 9th 2013.

Business opportunities in shale energy

Low oil and gas prices drive sector to focus on analytics and innovation to reduce extraction and overhead costs.

As of 2013, industry uses oil shale in Brazil, China, Estonia and to some extent in Germany, and Russia and in the US the shale field Bakken och Eagle Ford are the largest field with 81% of the production.

For investment banks on Wall Street the shale revolution has been one of their biggest sources of income in recent years. The expansion began in 2005 with small leveraged companies acquired drilling licenses in interesting lands. During the financial crisis of 2008 gas prices plummeted from $ 13 down to $ 3.50 and with the low price it is not profitable to drill and a consequence is that we have seen mergers in the shale sector. At moment the bank sector tries to sell licenses.
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